Minnesota Housing, in partnership with Greater Minnesota Housing Fund (GMHF) announces the availability of funds through the Single Family RFP.
Donor Name: Minnesota Housing
State: Minnesota
County: All Counties
Type of Grant: Grant
Deadline: 07/11/2024
Size of the Grant: Not Available
Grant Duration: 3 Years
Details:
The Community Homeownership Impact Fund (Impact Fund) Program provides multiple sources of competitive funding to increase the supply of affordable, owner-occupied, single family housing, while maintaining the safety and habitability of existing owner-occupied, single family homes in communities throughout Minnesota.
The Single Family RFP is funded by a variety of state resources provided by the Minnesota Legislature and Minnesota Housing’s own resources. The amount of available funding is dependent, in part, upon state appropriations approved by the Minnesota legislature, as well as demand for other uses of Minnesota Housing resources.
Types of Funding
Applicants can apply for a variety of funding types, and in combinations suited to the applicant’s project. Awarded applicants may receive the following types of funding:
- Grants
- Grants are awarded to selected applicants on a competitive basis to fund value gap, affordability gap/down payment assistance grants or forgivable loans, owner-occupied rehabilitation, the Tribal Indian Housing Program, interest-rate write downs, and other eligible activities for which Minnesota Housing may not recapture loans without increasing housing costs beyond affordability to the eligible homebuyer. Grants are subject to policies and requirements set by the Minnesota Department of Administration’s Office of Grants Management.
- Housing Infrastructure Bond (HIB) Proceeds Deferred Loans
- HIB proceeds are awarded to selected applicants in the form of 3-year, 0% interest, deferred, forgivable loans to finance value gap or owner-occupied rehabilitation. HIB proceeds may also be used by community land trusts (CLTs) for land acquisition, demolition and utility connections. HIB proceeds loans will be forgiven if the awarded applicant satisfies all contract conditions.
- Interim Loans
- Interim loans are awarded to selected applicants in the form of 42-month, interest bearing, deferred, repayable loans to finance the acquisition, demolition, rehabilitation or construction of owner-occupied homes. Interim loans must be repaid and include monthly interest payments, quarterly financial reporting, and a demonstration of the ability to meet net asset and current ratios according to contract conditions. Interest rates will be set at a future time and are anticipated to be between 4.5% and 8.5% subject to the market. Interim loans may be secured or unsecured and may not be transferred to eligible homebuyers.
- Deferred Loans
- Deferred loans are awarded to selected applicants to originate and close affordability gap/downpayment assistance loans to homebuyers or owner-occupied rehabilitation loans to homeowners. Loans to homebuyers and homeowners are structured as 30-year, 0% interest, deferred, repayable loans. Deferred loans are originated and closed by the awarded applicant then assigned to Minnesota Housing.
Funding Information
GMHF provides funding for affordability gap in the form of deferred, subordinate loans at 0% interest. The maximum loan amount per homebuyer is $15,000. GMHF will give preference to applications that apply a racial and economic equity lens to promote economic inclusion in the benefits of homeownership among households of color, immigrant households, and households with disabled members, and that seek to leverage cross-sector health and housing partnerships to improve community and individual health through investments in affordable housing.
Grant Period
Funded awards will have 3-year contract terms, with the exception of Interim Loans which will have 42-month contract terms. Awarded applicants are expected to complete funded projects within three years, not to exceed five years.
Eligible Activities
The Impact Fund may be used for the following activities related to single family, owner-occupied housing, including manufactured homes. See each item below for relevant details.
- Acquisition, Rehabilitation, Resale
- New Construction
- Owner-Occupied Rehabilitation
- Stand-Alone Affordability Gap
- Tribal Indian Housing Program
All funded projects must result in homes that are:
- Owner-occupied;
- Residential in nature;
- No more than four units with at least one unit occupied by the owner of the structure;
- Occupied by eligible homebuyers or homeowners (see income limits section); and
- Affordable to the local workforce.
Eligibility Criteria
Impact Fund grants or loans may be awarded to a:
- City
- Federally recognized American Indian Tribe or subdivision located in Minnesota
- Tribal housing corporation
- Private developer
- Nonprofit organization
- School district, cooperative unit as defined in Minnesota Statute 123A.24 subdivision 2, or charter school.
For more information, visit Minnesota Housing.
